IRS Payment Plans
How IRS payment plans work, the current setup fees, the lower penalty while you're on a plan, and a calculator for your monthly payment.
IRS payment plan calculator
IRS payment plans and fees
- Short-term plan (pay in full within 180 days): no setup fee.
- Long-term plan, direct debit: $29 online, $107 by phone, mail or in person; waived for low-income taxpayers.
- Long-term plan, other payment methods: $69 online, $178 by phone, mail or in person; $43 for low income, which may be reimbursed.
Penalties and interest continue until the balance is paid, but if you filed on time the failure-to-pay penalty drops from 0.5% to 0.25% a month while the plan is in effect (IRS). Apply online at IRS.gov for the lowest fees. If you can't pay at all, see the offer in compromise.
Common questions
How much does an IRS payment plan cost to set up?
$0 for short-term; long-term $29 online with direct debit or $69 online otherwise ($107 / $178 by phone or mail).
Do penalties stop on a payment plan?
No, but the failure-to-pay penalty drops to 0.25% a month if you filed on time.
What is a short-term payment plan?
A plan to pay in full within 180 days, with no setup fee.
Sources
More paycheck and tax calculators: IRS Nonprofit Search · IRS Tax Transcript Request · Itemized Deductions
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.